thank you. all right. let's get a final check on the, mats this morning. it the final trading day of the month of august and so far it looks like we've been seeing some green arrows. dow futures are up, but pretty modest gains up by about 12 points and s&p and nasdaq both higher, as well. want to thank both mike and brian for being here today good to see you guys we'll see you back here tomorrow good monday morning. welcome to "squawk on the street." kramer has the morning off final day of august as we wrap up the best august for stocks in 30-plus years. dow has some new components today and apple and tesla split and oil is above 43. our road map begins with the banner month for stocks. wall street looking to wrap up

its best august as we said in 30 years. >> plus that dow shakeup don't forget, salesforce, amgen and honeywell and pfizer is out. what is it going to mean for apple's influence on the blue chip influence speaking of apple. apple and tesla rallying ahead of the open. it's going to be a busy week for fed speak and we're starting all of that with richard and we'll turn to steve liesman. hey, steve >> hey, carl, richard. the vice chairman of the federal reserve being the most senior person since fed chair jay powell last week to talk about the new policy statement where the fed has announced it's averaging inflation. he says he's brought some clarity. saying the new policy is a, quote, robust evolution of the fed's prior 2% target notice that low unemployment rate by itself will not justify rate hikes under the existing rules

and he notes that the fed has learned that withdrawing rate hikes too soon prevents the expansion from reaching all communities. on the issue of further guidance, well, new policy elevates the importance of keeping inflation expectations anchored at 2% on the issue of policy says the fed is prepared to use its full range of tools and maybe a little heads up on what's happening in september don't know if he means to hint at this, forward guidance and asset purchases have been and are effective sources to support the economy. goes on to say negative policy rates are not attractive for the u.s. and the potential benefits to yield curve targets, quote, may be modest and are not warranted in the current environment he does say, though, yield curve should remain an option. carl, a little heads up on what's happening in september. don't know if he means to signal that we could get more information on asset purchases, but something in the market right now or some expectation of it carl >> right so, characterize, steve, the

degree to which this puts powell speech into finer resolution >> you know, it just puts a little clarity on the edges. what economists are trying to do is figure out a more mathematical way to approach this, carl i'm not sure clarida does it for us but we had several interviews last week, including this show the fed say 2.25 to 2.5 is what we mean as a modest uptick inflation. and he'll sit down with adam to see if clarida itself puts that kind of clarity on how high an inflation rate is acceptable to them >> all right steve, thanks for that interesting way to kick off the hour david and leslie, david, i mean, we'll watch the banks today, once again, as kb showing some interesting technical patterns but 2.25 to 2.5.

as some on the street are saying, david, good luck with that >> yeah. good luck with that is right and as we pointed out on friday, of course, the banks seem to rally for a very short amount of time, as you say, carl we'll keep an eye on those shares, which have been underperformers for quite some time given the s&p's 8.5% move this year many big banks down 10%, 20%, 30%. morgan stanley is the outliar there which i pointed out many times, leslie. given e-trade. the deal hasn't closed yet but going to and some of the difference of their business and also points when you mention e-trade to the place that the individual investor has in this recent rally "wall street journal" today with a story with things we have been talking about for months now it does show in the data in terms of the volume numbers and in terms of how many in particular stocks specifically

are being moved by the addition of buying from a cohort that has increased in size rather dramatically over the last six months >> that's right. they cite larry tab here 19.5% of shares traded in the u.s. stock market were from retail investors. that's double the proportion it was a decade ago you're seeing this dramatic rise and one thing i thought was very interesting was a large proportion of that was coming from asia. traders overseas in especially south korea were very inest thered in trading especially as the shutdown endured they liked the ease at which they could use the app similar themes we talked about with the robinhood traders here stateside and interesting nonetheless. we're seeing several interesting stories out of asia this morning, carl. including that warren buffett is purchasing, you know, what they call trading companies and more akin to holding companies and,

obviously, tiktok continues to be the saga that just has interesting develops and turns every step of the way. that's definitely a geography in the world that we should be paying attention to today, carl. >> yeah. no, we'll definitely get to the buffett news and watch mitsubishi david, as for tiktok we have cnbc.com reporting that we expect a deal, basically, in the next couple of days. where are you on this? >> yeah. you know, sometimes as a reporter you kind of lose some people along the way and i'm going to rely on our colleagues at cnbc.com in terms of their reporting where they're saying that the bidder has been identified in other words, we knew it was oracle and microsoft and this strange partnership with walmart. microsoft and oracle and oracle along with bytedance owners being the two key bids unclear

there was a third bid of any significance there but, carl, this law or this change that came out of china in terms of the export laws and tightening it specifically to ai andsoftware code you have to think that that gives any of these buyers pause. that is because it comes back to the specific issue that i've been talking about now for weeks related to the software code itself i mean, that is what makes tiktok, tiktok the ai and the code you would get for essentially what would be a year. you get to take what has been referred to me as sort of a snapshot of the code and then you get updates for a year and then you've got to build your own software, you've got to build your own engineering base if you're microsoft or oracle. that's what you're going to do one year and that's the deadline i have been told by numerous sources. the u.s. government was also willing to stay, too one year fully updates

if the chinese, carl, say, now, you know, that falls under our new export laws and you can't do that i'm not quite sure how as a potential buyer here you get past it. that said, i just don't know because, unfortunately, i'm not getting the information flow that i would like to be from some of those potential buyers, carl, to understand exactly what they are thinking right now. >> yeah, yeah. what a curveball, again, over the weekend. this idea that china would also have to sign off on any sale so, david, we'll watch it. obviously a story that has been moving in leaps and bounds over 24-hour news cycles over the past week. the other big thing, leslie, the new construction of the dow which mike santelli was talking about before the top of the hour this idea that it's a little more growthy, as mike said and maybe be an effort to keep up with the s&p, which it is lagging in ways that it has not in a very long time. >> a very important story, especially as apple undergoes its stock split today, 4-1

that, of course, because the dow is price adjusted and its components that operate on a price adjusted basis apple sees its weighting decrease so, the entrance of salesforce and the committee that oversees the dow's composition is hoping that helps the dow achieve more of the tech waiting that it otherwise would have gotten prior to the stock split by introducing salesforce of course, a pure play cloud company. but certainly apple along with amazon, microsoft. companies that aren't components in the dow have been key drivers to that disparity between the dow and the s&p. unlike we've seen going back to 1932 the widest gap between the two eight percentage points. the largest that we've seen in any of our lifetimes by far. it will be interesting to see, david, if that continues and

whether this new, the amgen, honeywell and salesforce can kind of help narrow that gap moving forward it sounds like a lot of market strategists are skeptical whether it will be enough to really narrow that gap at least in the short run. >> yeah, you know, as i've been saying for years, of course, it is a statistically irrelevant index given its price weight mike san tolly csantelli they can diverge for certain periods of time. they have been doing that now. it is interesting to see apple with that new price. remember, you got four times as many shares as you had previously for the uninitiated so, don't worry, it's okay but we'll see what the impact is overall in terms of whether the dow can make some of that up as the components do change there you can see what's in the dow right now if you're still

interested in that index >> it will never win your love, david. by the way, unh is now the big mover and shaker unh is the one that will be the big mover in terms of price weight we'll watch that from here on out. meantime, for the tesla split a whole host of other news and for that we'll turn to phil lebeau today. >> the tesla shares will start trading on a split adjusted level. instead of seeing it 21.33 and 21.37. a stock now trading somewhere between $444 and $445. there you see premarket down just a little bit. roughly in that 440 range is what you're looking at compare tesla to august 11th why are we picking august 11th 5 for 1 stock split and since then the s&p had a nice little move higher but nothing, nothing at all compared to tesla which

is up 55%. what is elon musk been up to split adjustment for the shares of tesla no, he has a lot of other projects on his plate. the most interesting tweet over the weekend, somebody asking him if he was going to be in germany. yes, i'll be in germany for a meeting with curevac that is developing a printer for vaccines ask cuvaccin s and cures. conversations with harvard epidemiologist confirmed that a high speed rna printer could be helpful in vaccines and cures in many areas elon musk is not only thinking about tesla or spacex he has his hands in a lot of different areas. september 22nd is battery day. this the next catalyst for this stock. either higher or lower guys, back to you. >> you know, phil, we used to

give jack dorsy a hard time splitting his time between twitter and square now you got musk trying to get battery day down i know you'll cover this news about the pig with the computer chip in his brain. i mean, what are we saying about his focus right now? >> i have never heard anybody say he is a scatter brain. now, look, there were a lot of questions when the, you know, go private, that tweet came out at 4:20 that seems so long ago kind of quaint going private at 4:20 and people saying, look, he is way too extended. he has his hands in tesla and spacex and all these other things but after that i never heard anybody on wall street suggest that elon musk is overextended i think this is one of these things where you accept him for what he is if he's interested in working in a particular area or side project whether it's nurolink

and you'll accept that if you have shares for tesla. >> phil, thank you i will take it from here phil lebeau, of course, we'll be watching those shares of tesla check the market cap i always like to do that okay, i got it wait they have adjusted fact set adjust your market cap for tesla. forget it. we'll get back to that later steve cohen has entered exclusive negotiations to buy the new york mets. we'll give you the latest on that story straight ahead.

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here's a story close to my own heart, of course the new york mets are very close to being sold to the billionaire hedge fund steve cohen of course, previously in a very close position to purchase the team late last year when things didn't quite get there this time he's hoping for more this is a story we first broke on friday evening. been following it very closely there were three bidding groups. arod and j.lo got attention an

harris blitzer, josh harris and david blitzer, private equity titans who own the devils and the 76ers also were amongst the bidders. but mr. cohen, of course, was thought to have the financial wherewithal to come away with the prize. the question is whether or not he would, in fact, bid to a high enough level to do that. again, as we told you late on friday, in fact, he has entered exclusive negotiations what does that mean? well, they still have to put the finishing touches on things. as we said last time, they didn't quite figure it out now last time was a little more complex. a five-year management agreement that he was entered in to with the family that controls the mets and is the controlling shareholder and the main seller here that you're negotiating with there was also some dispute over costs that would come along with closing, is my understanding and, so, while it may be only a couple days away and the hope is

that they will sign a definitive agreement within the next couple of days, they aren't quite there. still to come, of course, for mr. cohen, as well, is approval from the owners of major league baseball now, as somebody who thought at one time about buying, i was trying to buy the dodgers at minority owner of the mets some point to it and say some issues there but that is something of a surprise, at least for most of the people that i speak to, carl and leslie but it was a strong auction. and it's a legitimate story. a-rod people familiar with the situation a number of high-profile inesthavestors in e and you had, obviously, a-rod and j.lo in for $250 million you had jpmorgan's private bank willing to finance they did put a statement out late friday after our report indicating that they were no longer in the pursuing the team and saying that they were,

obviously, very sad in some ways to be in that position they said that they had commitment letters from credit-worthy partners and that consortium and they were ready to provide an exhilarating experience for the fans but i'll tell you, as a long-time fan, mr. cohen most likely is also going to provide an exhilarating experience given his deep pockets don't forget, leslie, as someone who follows the hedge fund industry, he has done a great job as repurposing his business along the way and changing it as he needed to to some extent and has proved to be a great business man, many would say now, we all know, of course, with the problems with the sec i don't want to overlook that. but, nonetheless, here he is, still, managing many billions that are not his opened up, once again, for outside investors. those of us who are long-time pets fans are keeping our fingers crossed. >> we talk about comeback

stories all the time in the sports world steve cohen is trying to create a comeback story of his own as you mentioned. i mean, it wasn't that long ago that we were talking about the insider trading scandal that plagued his prior hedge fund here he is, he has relaunched his firm at 0.72 he had to operate it as a family office and then finally was able to manage outside money as of a few years ago. able to raise the capital when no one said he could do that given, you know, certain types of investors hesitant surrounding the scandal and the reputational hit that his prior firm took. he clearly has been able to overcome those challenges. he's been venturing into new areas and doing more on the vc side he has a quantitative more algorithmic style trading within his firm now where it used to be more traditional long/short equity he's definitely evolved and i

think mets fans like yourself, david, are hoping that he can evolve the team for a nice little comeback, as well maybe those deep pockets i don't know >> exactly >> well, listen, it's, by the way, as an owner of the mets, carl and many of these teams. you have to be ready to taken olo on losses and particularly with no fans in the seats right now and the prospect that even when we get to next spring, it's very much unclear what attendance will look like in terms of in-person. you're talking about a club that could lose as much as $100 million for this year. perhaps for next year. those losses will subside but you have a payroll you want to increase it potentially to add some other stars. so, it's not just what you pay, it's what you're willing to lose when it comes to one of these teams. now, the purchaser of it sees an alternative asset class that overtime appreciates in value but you're going to be paying for the privilege, so to speak

he has plenty of money at 14, $15 million. he would be the wealthiest owner of a major league baseball club. >> interesting well, david, on a day where "new york post" is leading with another story about the mass exodus out of new york city. it's nice to see one very big player making a bet on the future certainly of the vibrancy of new york. so, we'll pay attention to that with your help in the meantime, a lot of news to get to this morning jpmorgan withdrawing price target got an upgrade on beyond meat a lot of news on fda and vaccines futures are mixed. we're back in a moment we renovated the guest room, so you can live with us. oooh, well... i'm good at my condo. oh. i love her condo. nana throws the best parties. well planned,

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we are just about five minutes away from the first trading session for apple and tesla since respective stock splits went into effect. both stocks a bit mixed and apple up 1.2% and tesla trading a bit lower in the premarket we'll be right back. ♪

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welcome back we've been talking about the strength of the equity markets for the month of august which has been triven by the better corporate earnings and then optimism about the vaccine ft over the weekend arguing or talking to the fda saying that they are willing to fast track a

vaccine before phase three trials conclude, if, in fact, it looks like an emergency use authorization is worth it. gilead today expanding the use of remdesivir. may be getting results on that before year end. the optimism crowd as it pertains to the medical break throughs continues to remain in tact >> yeah. and thankfully cases have started to trend downward. i think we're at 35,000 yesterday, which is lower certainly even lower than the seven-day average which is a good thing in terms of the country overall, carl and, yeah, we're keeping a very close eye on the prospects for a vaccine and when we can expect to see one approved. you know, i don't know does this, carl, add to what might be concerns amongst

certain part of the population that it is being rushed and, therefore, will not be safe? >> yeah, i mean, hahn addressed that question. are there signs that it is being pushed by political pressure on the other hand, leslie, fauci said if it looks like you've got, i don't want to say magic bullet but a good barrel in the chamber, we should not be afraid to get that out at least to people who can use it the most in the near term >> i think that's right. and communication from respected officials like fauci, like dr. gotleb who have been really leaders on this front, i think is going to be important as the general public assesses whether or not they feel comfortable taking that vaccine. of course, that is one of the key things that the market has been looking forward to. so, if people are super hesitant about taking it, if they're not interested in any kind of

injection and are concerned about the health risks and the guidance from the government, that could be a huge head wind to what we've seen in terms of the opening of the economy and the health crisis in this country, david >> yeah, i mean, i continue to focus on antivirals and we continue to focus on the antibodies and perhaps things that would be a bridge to a vaccine, as well, or would be there for people who do get sick you know, it's still very much unclear, carl, exactly if we do get a vaccine approved let's hope before year end how widely it would be able to be distributed. manufacturing is moving ahead on so many of these different vaccines because you want a have some supply but you are talking about what might be billions of doses that might have to be given. and, so, so many other things that come along with that in terms of the supply chain for providing a vaccine who would get it first and how long to

herd immunity. so many different questions that are key for so many small and medium-sized businesses in this country. certainly thinking here, of course, restaurants and the like that are silver lined and will be even more so soon on people coming inside to dine, particularly as it gets colder here in the northeast. >> we'll talk to jim, of course, later in the week about what is going to happen to restaurants i did notice this morning, david, new jersey governor murphy says indoor dining will begin friday, i think, at 25% capacity that's five months after the pandemic began so, that's very good news for the restaurants in new jersey. we'll see if that translates to areas like manhattan where people are still trying to dine outdoors as the weather is getting cooler right in the middle, essentially, of major arteries throughout manhattan, at least david, i got to get your take on ge today and jpmorgan. steve tusa, something we talk about with jim, if he were here.

withdrawing their price target saying there is little equity value in their words, david. they say not offering specific guidance, but somehow finding enough to say that they'll be free cash flow positive in 2021. in tusa's view the entire earning's curve will collapse. >> yeah. that's pretty straight forward there's noert s shortages facin larry as we know and just to put it in perspective, i mean, we're talking about giant ge of $57 billion market value company far less than its one-time competitor, still competitor and honeywell, for example, which is over $111 billion market value i'd like to point this out sometimes to give people a sense of where things are and where they've come from. no shortages of challenges here. i think if jim were here, he might have some questions in

terms of tusa for we said hung too long on the negative outlook for the company. with that said, nobody expected the pandemic certainly he could not have known about that at the time, but it has added enormous challenges, leslie, for so many businesses including ones like ge which are dependent on customers such as boeing, which is dependent on the airlines and we know where all that goes. i don't know the latest traffic numbers year over year, but they are down a lot still in terms of passengers >> oh, absolutely. how often do you see this kind of humility from the street where they withdraw the price target altogether and we know there is downside risk here and we don't know how far it can fall we'll take a step back and see and in some ways, it's a response to all these companies that have suspended their guidance giving the street little window into what they're expecting for the rest of the year and it really hits at this

uncertainty delima that people aren't sure what is in store for the rest of the year, 2021 and what a vaccine might mean and how quickly that could filter through the population and, therefore, the economy but i think the same is true for what's going on with the stock market and in light of, you know, not having some of this clarity that we're seeing, the markets just continue to go up and up and up and that's part of why we're seeing such strong performance in august. i think a lot of people are now turned to september where the average performance is actually lower on average in september declines about 1%. so, people are perhaps expecting the markets to take a little bit of a pause next month. but, again, this is such an unconventional year. every rule that you've been taught and every little ounce of history that you've learned about the market you can almost throw it out the window i feel like i should retake business school. stock split make the stocks go

higher okay we didn't learn that you know, the fed has, you know, adjusted its mandate so, you know, i think everyone is kind of learning as they go these days, guys >> there's no doubt about that and to your point, leslie, about continued uncertainty going into the fall that's sort of the dynamic that the journal wrote about over the weekend in that we saw a number of announcements of workforce reductions on friday from coke, from salesforce.com earler i in the week and mgm mgm hoping to retire some of those workers when demand rebounds i don't know, david, those were some of the best performing names on friday and one more sign that the street is looking for companies to adjust their operating leverage and to a large degree, that's going to involvereducing head count >> you know, it's funny, carl, because you do hear about it in conversations that i will have,

you know, that are not for attribution with leaders of various companies. there is a thought process, i think, that goes more or less like this which is, you know, i never experienced, we never experienced anything like this pandemic and i realize now that we can do a lot more with less and sometimes that also, that just means office space. it includes employees. and we've seen some of the layoffs. we're looking at some of the names right there that were announced over the course of last week. and many of them still travel or leisure related. but it's beyond that and it's got to be something that people keep in mind as we sort of try to assess the overall economic health right now because there are plenty of ceos, i think, who are going to unfortunately almost take advantage of or use this as an opportunity to say, hey, i don't need quite as large a workforce as i might have once or even as i may have thought i did given how productive people are being by not even being in

the office and still those who are there doing what they need to do guys, i wanted to hit at&t over the weekend the "wall street journal" reporting on something that many ways has been sort of out there or sort of thought that we knew was happening. and, in fact, the journal had reported on this very prospect some time back but it is the case is in talks at this point i'm told from people familiar with the situation. it's still fairly early days but they are in talks with private equity firms with sale of directv unit. of course, this is a deal i followed closely when it was announced and even then we had a lot of questions about the rationale behind it despite what were randall stevenson's, the former ceo of former at&t to why they did the deal. certainly the free cash flow characteristics of the business will help at&t maintain its

dividend but it is a business that has deteriorated over time and the subscribers is unabated and come down dramatically. when we talked to new ceo after the last earning's report not that long ago, i did press him on directv and on whether it was a core asset he wouldn't come out exactly and say it wasn't, but take a listen to what he did say to sort of get a sense for their thinking >> what i clearly believe is software based technology platforms are really important for our business moving forward. and they're able to deliver the kind of product that a customer likes. and that's where we're focused on our investment and what we're going to do moving forward >> that is not directv what he's

talking about right there. there is this prospect could you bring directv and dish together because the man who controls dish is focused on trying to roll out a nationwide 5g wireless service that is not going to happen here no way i'm told at&t noex aegotg with dish to combine the companies in some fashion. perhaps a private equity firm that did step up if they did reach a deal to acquire directv go and negotiate to purchase that company and bring them together within whatever company was created by the private equity firm or firms, if they get to it. they are hoping to get something done, at least in terms of signed by the end of the year. we'll see if they're able to but, carl, in many ways this story is one we already told which is this is a huge deal and it was a great deal, if you were directv shareholder. mike white we had had on several times should be applauded for the sale number at that time

it has deteriorated since then the capx are not particularly large and it does not generate, a lot of the cash does come right through. it does have that going for it it also, unfortunately, has this going for it for those of you on the radio listening, my hand is going left to right and down. >> david, and then, of course, there's tenant which did pretty well internationally with a lot of theaters operating at minimum capacity rich of imax on "squawk" earlier. not too many dow components in the green this morning let's get to bob pisani. >> three to two declining to advancing stocks we're up seven straight days, guys we cleared 3,500 we'll see if we can do that. best since 1984 right now. the key thing is looking at the sector and technology is on the upside and mostly because apple

is up today. most tech stocks are on the down side i think keep an eye on that. discretionary okay and energy and banks a little bit weaker overall. as for the risk for the rally, a lot of hand ringing over the weekend about the potential concerns out there september is historically the worst month, yes, but not in presidential years, folks. poor but not that poor stocks are pricy but looking at better earning potential the risks that people are citing right now are true, but i don't find them terribly alarming at the moment what is really animating the markets is the hope for higher earnings down the road and if you look here, 2021 the estimates here, this will be the trough year. $130 for the s&p 160 last year and the hope here is 2021 is going to see back to 165, 166 and there are people who think this is way low. just like the second quarter, the estimates were way wrong the hope is 2021 for the bulls the estimates are way wrong.

i talked to people who thought we could go towards $200 for that that is animating the markets right now. you can't blame it look at the news flow has been fairly good. the fed stimulus has been very active overall the reopening story has been improving. generally, that's the case the vaccine is coming. and it's certainly true that the overall fiscal stimulus might be fading, but that's not really moving the markets that much the concern for that here. as for the dow, big day with a lot of new additions of course, salesforce and honeywell and amgen and all three of those are up since they have been announced going into the dow. even though not a lot of money index to the dow, there is some movement in those particular stocks as for the apple stock split a lot of discussion over whether that matters i think it does. we all know fundamentally stock split doesn't matter for the company at all back in the 1990s remember what happened a stock split was viewed as a vote of confidence in the company. almost like a call from a broker saying i have a hot ipo. it mattered a lot for momentum

stocks back then matters for apple, too a lot of options activity around apple. somebody still believes it matters. as for the dow, a little growthier today. health care has gone from 14% to 18% thanks to amgen in it for the dow jones industrial average and technology is down from 27 to 23. but salesforce in it you throw in amgen and salesforce, carl you get a little bit more growthier aspect to the dow jones industrial average back to you. >> yeah, well, we'll look to see if that kicks in this morning, bob. thanks very much we'll keep an eye on the markets today. got a fresh record high on the nasdaq and the s&p this morning. and also when we come back, the fight against the coronavirus. a phase two and three study being started for a covid anti-body treatment. we'll talk with the players involved in a moment

vir biotechnology and first and human test of a covid-19 antibody treatment our meg terrell joins us with special guests >> the chief scientistic officer and the ceo of vir both of you, thanks for being with us this morning let's start with you, to kind of put into context where you see

antibody drugs, mra s particulae ones you're working on fitting in the landscape of trying to stop this pandemic, especially as we hopefully will have vaccines coming onboard some time soon. >> well, hi, meg, great to be here you know, the landscape -- the way we've seen it and the way we've seen it from the very beginning multiple shots on goal to provide solutions for covid we have three major areas of focus. the first is vaccines, as you know we're working with other collaborators on vaccines. what we bring to the table there is a very special additive that will make the vaccines much more potent which will allow a lower dose and administer to more people or result in better efficacy another approach we are taking to provide a therapeutic antibody to block a protein that we think is in the overactivation of immune system that some patients who get covid

that can result in respiratory failure or even death. the third component that plays into all of this is develop against the virus itself and block the virus from causing the problems just to step back what your body makes, hopefully, when you get the virus or, in fact, hopefully what your body does when you get the vaccine. it makes antibody to protect from infecting what we're doing with vir is developing a very special aptibapt antibody one that was screened that vir scientists are looking at from people who got the coronavirus in the past and look for the very special ones that were very potent and neutralized. and by bypassing basically the body's need to make these antibodies, we can give them directly to patients to protect them, if they have a mild case of the syndrome or potentially even to prevent. so, we're very excited about how potent this antibody is and how

it could fit into the landscape from that perspective. george, i don't know if you want to add anything. >> jor >> george, you know, joined us at the beginning of the pandemic to tell us about vir's approach. george, i know you were hunting through antibody libraries from people who had recovered from the original sars. i understand your antibody you're taking forward protects against one and two. tell us how your sars differentiated from others >> i think there are several characteristics of our antibodies that are differentialable it is isolated from a patient who recovered from sars. we believe it binds to a portion of the virus that is highly conserved and difficult for the virus to change. that suggests that it would be

difficult for the virus to mutate and escape this particular antibody that's born out now by the tens of thousands of sequences that have been analyzed from co-vid and by the difficulty of isolating resist immunes in the labs. refactory is one potency is another potent neutralizing antibody, neutralization means the ability to block and the ability of the virus to enter cells and replicate. third, antibodies do more than that some antibodies have the ability to attract cells of the immune system to come in and kill cells that are already infected. and we believe that's a very important part of the efficacy for antibodies and this particular antibody has very important and very potent function additionally, we've extended the half-life of the antibodies to provide protection over a long period of time we believe the antibodies have several characteristics that

potentially differentiate them >> and george, just to follow up, you're starting this clinical trial it's first in human now. you're calling it a phase two three showing you condensed clinical trials are getting. if it passes the initial phase you'll expand it to 1300 participants how are you showing how quickly you can enroll the studies how does it affect your timing plans? >> the eua for the plasma is for hospitalized patients. our trial is being conducted in early co-vid patients not hospitalized we don't expect that to interfere. and i think enrollment in trials is really dependent on being in the right place at the right time we're opening sites in europe and south america. the sites we're opening, most of

them have point of care capabilities to test on site and get quick test results for the sites thatdon't have that, we're providing them with machines so they can do that because testing has been a major problem for enrollment we're enrolling about 30% more sites than we need we're doing everything we can to make sure we enroll quickly. >> all right george and hall, we're going to have to leave it there we hope you'll keep us posted on your progress. thanks again >> okay. all right. meg, thanks for that after initial highs on the s&p and the nasdaq, seeing a little bit of selling as we wrap up the best month for equities since april. vix above 25 again w d142. y. now you can trade stocks and etfs for any amount you choose instead of buying by the share. all with no commissions. stocks by the slice from fidelity. get your slice today.

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today's worst performers on the newly constituted dow. adlmart, jpmorgan, boeing leing the index lower today. we'll be back in just a minute

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welcome back want to get to a deal we hadn't mentioned yet. it's not that large but it's an interesting aacquirer in nestle and a premium they are playing for the roughly 74% of this company it didn't already own. i'm talking about a company called aimmune commercializing treatment for

what they say are life threatening food allergies and has one drug on the market that is the first and only fda treatment approved for allergic reactions to peanuts you can see the premium was about 175% the deal price $34.50 for a stock that was trading well below that again, as i mentioned they had about a 20% governance at nestle they'll only be buying the rest of it. for that very large premium, carl and leslie. certainly wort noting, and obviously going to help the company continue to try to commercialize other drugs to treat various food allergies they do have one already on the market to try to lessen the severity of allergies to peanuts. back to you. >> yeah. they said that peanut allergy

treatment has potential of a billion dollars. clearly so many people have peanut allergies there hasn't been an effective way to deal with it other than avoid peanuts. this was seen as a breakthrough, a huge tam for people who suffer from allergies to peanuts. >> yeah. and welcome news for any parent who has a child who is allergic. obviously very dangerous situation. something that is exhausting to monitor all the time so we'll watch that closely. good monday morning, welcome to "squawk on the street. i best month overall since april and the best august in several decades. a little bit of selling here as we close out we'll see what the calendar effects bring. for the moment, dow is down 165. >> we'll see how it plays out today. our road map starts with wall street's best august in more than 30 years but stocks moving

a little bit lower this morning. a closer look at the coronavirus pandemic and the trump administration's economic response and don't forget, of course, those reopening risks. getting back to the movies the ceo of bow tie cinemas is going to join us in this hour. as we get ready to wrap up august and the rally, have investors become too cocky we're looking at the long time summer romance wall street has had with risk. >> came by surprise. not looking for it that's the way things go sometimes. it's a yes or no question. it's probably more complicated than yes or no you can see elements of excess developing if you look at how stretched the indexes are above their longer term trend, just on a technical basis, you see the streaks of up seven days in a row, five weeks

in a row it puts the market in a position of being out on a little bit of a thin branch. and then the seasonal head winds, we don't know how much it matters this year. august was supposed to be weak it had a reputation that way it was not at all. after strong august you have giveback in september, also election years that's often when the late summer weakness comes. and some of those clues that there is overconfidence developing out there the option speculation on up side calls has been just profoundly enormous relative to downside protection. people are thinking they pay up for lottery tickets for the up side you have the spak mania. these things are conditions that say yeah, we have a bull market. people are feeling pretty good about it has it gone too far? the other issue is a persistent calm up trend. the market does get overbought that way in the midst of

stronger bull markets. it's not usually the way markets peak even with giveback, don't fight the tape are pretty good rules right now that's giving the longer term benefit of the doubt to the bulls even if we backslide a little bit to kind of get the market back in a position where it can make further headway. >> all right mike, thank you. stick around i want you to stick around we also want to bring in our guest here, cio at newburgher berman you heard mike giving his analysis on where we stand as we enter the last few months of the year and after this record august, what are your thoughts about the broader market >> well, it's certainly been a monstrous august the markets were up 7% 8% plus, and you had a sense viruses were peaking. you had better than expected second quarter earnings although

expectations were low. they did exceed it meaningfully. some of the echo data has been improving, and last week you saw from the fed continuation and expansion of the dovish policies that have been helping the markets over the course of the last couple months that's helped develop some really bullishness i think mike summarized it well. certain segments of the market, i think you see frothiness, and when i look across our portfolio managers, those in the value camp are getting a bit more aggressive because they're seeing the economic data improve a bit, and on the growth side we've seen some pull back because of the aggressive valuation on the edge of the market, if you will. i think over the next couple months my expectation is you're going to see a trading range within the market. you've got important policy issues to be resolved of course in november. and because the markets move so

far so quickly, i think it's a time to sort of see it really tread water for a bit until you get greater clarify beyond that. >> yeah, but joe, don't you abandon the so-called frothy stocks at your own peril as much as we like to hear about value coming back in a significant way, i don't know if you're a pm at newburgher, aren't you going to be underperforming the s&p if you don't own some of those names? >> it's a real challenge it's a real challenge. because you want to maintain that valuation discipline, but i think with the market, it's shown valuation is not a catalyst if the business model is working, the stock will continue to work, almost regardless of what that valuation is on the board. at the same time, if the business model is not particularly working, think devalue stocks, the catalyst which may be an incredibly cheap

historical multiple doesn't cat liez investing in that end of the market so it is a momentum driven market that's part of the job of our pms, to maintain that level of discipline and make the judgments on individual stocks that get ahead of themselves i still think that leaning into quality, durable growth is the right place to be right now until you see a more sustained pickup in the economy. >> mike, as you look at some of the news today surrounding the changes in the dow and the stock splits, things that typically we might, we brush off on the stock side of things, how would you characterize those in terms of what they say about investor's mind set right now, particularly as it relates to just momentum and news-driven trading? >> yeah. i mean, leslie, i think the way i would think about it is that these companies, whether they're explicit about it or not are

catering to an active new constituency in the market there's a new public excitement about certain stocks in this market in the last few months, and it's animating things in a way that wasn't really the case for much of the prior decade, frankly. and that's not necessarily in itself to say things got overheated or there's dumb money in the market. it's just short-term crowd psychology is what moves most stocks over a relatively short time period. and so yes, we can talk about how stock books don't mean anything and it's psychological from companies, but it's kind of what's changing valuations at the margin all the time in the short-term i'm loathe to say it's somehow this kind of capstone of this bull move is that we got the prominent stock splits and we have new retail traders and therefore things have to end i don't necessarily think it runs that way. i think it could be a different type of market for a while where

that activity happens in parallel to everything else which is the algorithms trading with each other, the models all agreeing on how things are supposed to be valued. i think you can have multiple threads running through a market at once. >> and joe, if there's anything co-vid has shown us, it's that it's accelerated trends we were already seeing taking place. one of those being the appeal of private equity as the uncertainty looms, people are turning to private equity as more of a steady less risky, although some would argue private equity is very risky place to put your money. you have been big participants in buying stakes of the gps of private equity firms i'm curious what you're seeing on that front in this market >> well, we see from our big institutional clients, a continued strong appetite for private equity allocations certainly the long-term returns

private equity generated justifies that allocation. and the mind set of large institutions is to be very long-term focussed, and private equity returns have been impressive in terms of what they've generated. that continues to be a strong part of our business and the trends we've seen in client flows have been consistent with that you're seeing pressure on public market equity allocations. you see continued strong allocations and fixed income in very strong allocations in private equity it's been the trend we've seen over the last four, five, six years. >> on the election, jpm's derivative desk as a note out arguing momentum is in trump's favor. the more we see violence and protests, and the more co-vid cases come down, and they argue the market is still positioned for a biden win, and all the

implications that has more esg and various sectors. i wonder where your thinking is on that and to what degree will he process that with greater frequency in the coming 60 days? >> carl, that's an important point. we've seen the betting markets reverse, the trends we saw a month or two ago where many were looking at those markets among other things, indicating they thought biden and potentially blue suite would result. we've always viewed that the race would close and get much closer over the course of the coming months. and i think the market right now is reflecting that i think that there's not a clear sense that a biden victory and a blue sweep is certain, because i think if that were the case, there would be more head winds in markets because of the tax policy, particularly corporate tax policy the biden platform has right now. but i think the reason around

having a level of choppiness in the market over the next couple months i think is because of that the policy head winds you're not seeing resolved until after november or maybe after if the election process is as sloppy as some may be concerned about. >> yeah. we'll definitely have to hang on if that's the case joe, thanks for taking time with us today >> thanks for having me. when we return, mnuchin tried to save the economy. not even his family is happy that's the title of jim stuart's latest column. he'll tell us all about it rig after the break. don't go anywhere. tools, cattle, grain, even shells represented value. then currency came along. they made it out of copper, gold, silver, wampum. soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future.

that's why it's time for digital currency and your investment in the grayscale funds. go digital. go grayscale.

as coronavirus cases continue to climb in parts of the country, it may have impacted the legacy of the treasury secretary jim stewart joins us this morning. he has a new column out titled steven mnuchin tried to save the economy but not even his family is happy jim, good morning. good to talk to you. what a remarkable piece of work. >> thank you, carl it was fascinating to be back in the thick of washington politics again. >> and there's so many threads of news within it. the president's reaction to the

initial stimulus package i wonder what you think the actual lead is >> we can't ignore the fact that the treasury secretary i believe has rendered the country a tremendous service by maneuvering the first stimulus bill through a highly partisan congress let's face it, a fairly dysfunctional white house. i don't want to take anything away from that, but what is his reward for that? we need another one of these stimulus bills right now everybody agrees republicans have called for a trillion the democrats 3 trillion they all agree we need a big additional stimulus and it's not happening. why? because mnuchin's reward for succeeding the first time was basically to have the rug pulled out from under him trump listening to critics belittle him in front of the members of the administration didn't take the opportunity to praise him when i asked for comment. his wings were clipped

they put meadows in there. they didn't allow mnuchin to do the negotiating. so we have no deal nancy pelosi and meadows are like the wasp and the preying mantis in the bell jar nothing is going to happen i think there is going to be a deal, but it's a shame to me that -- if mnuchin was left to his own devices, i think we already would have a deal now. >> yeah. and the large part of the story tries to -- go ahead, jim. >> i just want to add that he's not ideal -- ie dee logical. he's not a hard right person it's amazing he survived as long as he is, but there's a huge personal cost. he was born and bred in the east

coast wealthy elite that the trump populous hate. his own family is to put it mildly, is very troubled by his service to the president and the more he succeeds and the more likely trump gets elected, the more that segment of the population dislikes and criticizes him >> and to his lack of apparent and obvious ideology that he somehow is almost apolitical, i wonder you're not suggesting he's going to wind up trounced or thrown out of the administration, writing a tell-all book, criticizing the president in the rear-view mirror like some past members of the cabinet. >> no. at one point i jokingly said are you going to write your own book there was no reaction to that. i don't think he's going to get thrown out of the cabinet.

his wings have been clipped somewhat, but there's only a few months left in this term, and even if trump gets reelected, that i think would be a different question would he get reappointed to a second term? that i'm not sure about that he has -- his strongest critics are from the right it's from a big chunk of the republican senatorial group, the hard core trump people don't trust him. they would love to get him out the things i heard i mean, oh, and back in that washington quote, unquote, swamp, the people, the vicious things people say about other people off the record is -- was a reminder to me of how bad it can be down there. >> you said it here during the course of this interview and in the piece, it's amazing he survived this long

what is it about his personality since you've been able to understand it that's allowed him to survive and we know this is an administration where we've seen enormous turnover in so many of the top jobs >> he makes a comment at some point when i asked point-blank, what accounts for your survival. i think it is he never forgets the fact that he is working for the president. his ego is not -- it's relatively mild compared to some of the other figures in the administration, certainly compared to the president. he's willing to subsume his own views. he tends not to express his political views either privately with his friends or publicly but he never forgets the fact that it's the president who was elected. he is there to serve the president's agenda, and pretty much whatever the president decides he will faithfully execute that now, in private he says he does

give his candid advice he certainly has disagreed with the president on things but once a decision is made, he swallows, and he carries it out. and it was not easy getting this story done he is not a press hound. he stays on message very relentlessly and in no way does he try to take the spotlight away from the president. >> yeah. well, having interviewed him as we have many times, we know that there's not a lot there beyond what he wants to tell you, and even that sometimes is hard to get. but yeah not sharing a lot. jim, do you think he's learned and grown on the job i mean so many different challenges he didn't necessarily have a resume that would lend itself to thinking oh, treasury secretary. >> no. not at all i think -- well, yes

who wouldn't i mean, he had a rocky beginning. he had some bad pr things. you know, the flying in the plane and the incident with his wife at fort knox, and there was some bad publicity stuff i think he was unprepared for the scrutiny he got by being in this office, and i think that's partly why he is now sogard guad about expressing himself he got the tax and got the tax cut through. that was a significant legislative accomplishment i think he learned a lot about the ways of the legislative process. he's smart, a fast learner, everybody told me. through that experience, he has a pretty good working relationship with the democratic side of congress virtually the only person in the white house who does and then all the sudden we have this huge crisis upon us again, i want to give credit to jay powell he has been tremendous asset to the country, and has worked

closely with mnuchin i was impressed at how much they learned from the financial crisis of '08, '09, and how quickly they implemented that. in early march, as you well remember, we were facing a financial crisis with a 2008 style meltdown in the liquidity and all kinds of markets and a major fiscal crisis at the same time. no secretary has had to deal with that since world war ii, maybe even the depression. they flooded the financial system with money. way more than 2008 and faster, and they did come up with this 2.2 trillion, over 3 trillion stimulus and the president signed it two weeks later. that i think shows he learned a tremendous amount both from previous crises and from his

time in washington >> yeah. indeed we say it must read, but this one truly is with the mention of your friend and ours, jim cramer in there as well jim, thanks for coming on and spelling it out a bit. >> thanks very much. i would agree to read that article. for our etf spotlight, ticker vb in negative territory for the year currently trading down half a percentage point despite a surge of one of its biggest holdings, beyond meat. yes, look at that up more than 3% today citi upgrading the plant based burger maker note to sell. the firm also saying the stock now offers a more balanced risk/reward profile. shares up almost 80% year to

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as they passed the buck to the future. that's why it's time for digital currency and your investment in the grayscale funds. go digital. go grayscale. mcdonald's slamming the former ceo in a new legal filing out this morning kate rogers as the latest for us in this interesting story to say the least. >> very interesting, david that's right mcdonald's firing back at steve'ser brook in a filing today in the company's lawsuit

mcdonald's saying when they investigated him he disrespected the values and abused the trust of the company he's argued he should not be held responsible for bad acts fails under the law. mcdonald's is suing him for fraud, destroying evidence, and moral terp dude. the suit claws it back by firing him with clause. the company accusing him of having multiple sexual relationships he hid mcdonald's using strong language today with regards to the claims the suit should be dismissed in part because he did not hide his own misconduct well enough saying investigators should have uncovered it when they were negotiating his severance package. we'll bring you any updates we

get. carl, back to you. >> just an amazing story we know you'll stay on top of it for us let's get a news update with sue. >> hello good morning, everybody. here's what's happening at this hour the first known direct commercial flight from israel to the united arab emirates as taken place. it's a sign of the normalizations between the mideast countries. in new jersey restaurants are being allowed to resume indoor dining operations starting this friday capacity will be limited to 25%. the governor will give more details on the reopening later today. and in nebraska ranchers are trying to catch dozens of bison on the loose after breaking out of a feed lot. about 150 of the animals escaped on wednesday most have been recaptured but the others have spread out over

more than 140 square miles unfortunately, at least one has been hit by a truck. they're trying to round them up to keep them safe. back to you. >> all right when we come back, movie theaters avomid the pandemic we'll talk with the ceo of one theater chain in men aomt. na hog you this quarter, cool? drop the taco, get in the car. does this sentra feel like a compromise to you? wait what? the handling, it's good right? no compromise there... nope. watch this... brie brie... (sfx: rab beeps) rear automatic braking. so if this nissan sentra isn't gonna compromise why should you? you're right! that a girl. the all new nissan sentra. with more standard safety features than any other car in its class. ♪ we know that traditions matter more if they're celebrated with the ones you love.

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movie theaters are hoping christopher nolan's new film "tenant" will drive movie goers back to the cinema today bow tie cinemas is opening a cinema the ceo of bow tie cinema joins us this morning to talk more about that ben, good morning. good to see you. >> thanks for having me. >> we've been waiting for

"tenant" for a very long time. it sounds like chains like yours are going to try to build a strategy around it right? >> we are. "tenant" is a new release from christopher nolan director it looks promising it's the follow along although not a sequel to inception which reached the 10th anniversary this past weekend. it had a strong international opening last week to about $53 million including in canada in 41 markets and so we are anteing a strong opening week and weekend it officially opens tonight with early shows. tonight through thursday, and then the wide release with a full schedule is friday. >> yeah. no, it's getting advanced press in maybe ways that no movie ever has. tom cruise tweeting videos of

himself going to the theater to see it saying he loved it. to the degree that there is demand to see the film, how is it being met with the safety protocols and the capacity constraints you have to live with >> we have a national program in the works that piggie backs off a program we developed for our connecticut theaters that were allowed to reopen back in june it's called safe cinema. cinema safe on the national end. the highlights are we're selling 50% or all of our available seats. and we're 100 reserved no matter when you come in, you can be assured you have at least six feet of spacing around you when you're sitting in the auditorium so every seat in front of you and a seat in front and back we're allowing that groups that cohabitate to sit together if

they'd like once they get into the auditorium, but other than that you'll have very ample space around you we're asking all our customers wear a mask and keep them on in the theater unless they're eating or drinking all our staff is wearing masks and gloves we're maintaining appropriate social distancing in our lobbies and in any public spaces such as restrooms, et cetera, and the reaction so far among the public has been positive. we've received a lot of compliments that people who say they are appreciative of the effort and they feel safe and comfortable. and the numbers over the last two weekends have reflected that >> ben, leslie here. i'm curious, you have only about a fifth of your movie theaters that are actually operating right now, and in three of the six states where you have locations, how long can you sustain as a business in this

environment, especially with the capacity restraints? i'm sure you have additional costs with regard to cleaning and staffing and technology to make sure that your patrons are safe here. >> it's a challenge. i think that if we can gain traction in -- you have to look at it a little bit on the national stage right now we're at about 62 % on the national level of north american screens open and operating. that's in 44 states in the united states. so that shows you just how much concentration there is in -- on the coasts, in particular new york and california which are not open yet california has a plan to start to open in some counties and new york is not open yet we need to ask those governors and officials to recognize what's been done in other states safely and what the public response is and the fact that we're operating in a way keeping our customers safe and allowing

business to reopen and continue in order to open those markets which are very, very important to film producers and distributors because if they're going to continue to support exhibition and continue to gain the revenues they need to gain to make their money back from the expensive big movies, they need to have all the markets in the united states open >> but ben, specific to leslie's question, because we're trying to get a sense from so many business owners that have been particularly impacted by the pandemic, i mean, do you have debt on your business? do you own your screens or lease them how are you dealing with sort of not really having people come into the theaters for these last four or five, six months >> yeah. it's a little bit of everything. we're in a fortunate position that we are a four generation family business. we have very little debt

that's allowed us to proceed in a way that some others our size haven't. that's just lucky. we are also in an unfortunate position at our size where we were not afforded the benefits that the restaurant industry was supported with respect to waivers under the ppp program. we were just a little bit too large to be eligible for any of that help and assistance and we're also in a position where we're a little bit too small to take advantage of or tap the capital markets for additional liquidity so it's a tight situation. it's one where we're as a private business, a family-held business we are utilizing our reserves to be able to keep going at sort of a minimal level until we get back to the place where things are normalized. >> well, "tenant" hopefully is a

good start to rebuilding that. there's a lot of movies rushing to market and hopefully will be an equal in assisting your business we hope you'll come back and talk about that in the future. thank you. >> i would love to >> the ceo of bow tie cinemas. as we head to break, it is the last trading day of the month. can you believe september is tomorrow with the dow and the s&p on pace for their best august since 1984 we'll be back. stay with us traded goods. tools, cattle, grain, even shells represented value. then currency came along. they made it out of copper, gold, silver, wampum. soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money

as they passed the buck to the future. that's why it's time for digital currency and your investment in the grayscale funds. go digital. go grayscale.

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three years ago bridge water sued employees an arbitration panel sided with the upstarts we spoke with one of them and asked him how he proved he did not steal trade secrets. >> bridgewater brought an arbitration against us alleging misappropriation of trade secrets. there was a three-year arbitration where the final award was made public. they found based on the evidence presented at the hearing we hadn't misappropriated any trade

secrets and in fact, they found that we had developed our own methodologies. independently of everything that bridgewater alleged. >> what's your response to the arguments that they think even though you technically won the arbitration they believe that it's only because they couldn't prove that you didn't steal their trade secrets? >> well, i don't want to comment on i guess the specifics of the arbitration given that i think the court actions have been discontinued and resolved on dispute. all i can say is trade secret litigation is something that happens regularly and there are things people use to adjudicate the cases and these are the procedures we went through and the arbitrators final the final decision >> and they found bridgewater fabricated and withheld evidence, disregarded its own records in pursuit of the

litigati litigation against you will you seek further retribution in addition to attorney's fees to justify your side of this case? >> we're not retribution guys. we launched our company in order to found a business to really kind of have the chance to pursue our own little slice to the american dream, and that's what we're about we're not looking to go after anybody. we're just looking to run our fund, and from our perspective the dispute is suggested we're looking forward at all the opportunities we see >> what do you think this dispute says about the hedge fund industry, talent management in the hedge fund industry do you think it will impact bridgewater's ability to recruit people in the future

>> i can't comment on their strategy it think it illustrates the hedge fund industry is a competitive place. i think that's one of the things people find relatable about our story. launching a small business is -- it has its own set of challenges that's true whether it's a hedge fund or a business in any other sector of line of work we've done that, and it was i think we've overcome more challenges than most you know, bridge water is the largest hedge fund in the world. they launched an arbitration against us again, we've climbed that mountain and we're on to the next >> how did that mountain impact your ability to really get the company up off the ground and running? >> having one of the largest incoup incumbents in the state have an argument with you, i think people imagine what it might be like, but certainly, i think we're not trying to sort of live in the past.

>> obviously you were subjected to not compete clauses at bridgewater when you were there. have you installed noncompetes among your own employees >> if you want to keep talented people and have them happy and wanting to show up to work every day, it's really more about the carrot an the stick. rather than trying to allot them into stuff with restrictive ingredients, you want to make them feel like they're appreciated and make them feel like what they're doing has real value. that keeps to the core tenants of how we want to do business. you don't want people walking out the door with code the irony is we did nothing of the kind >> and to hit the nail on the head home for the viewers, how is the strategy different from one bridgewater does >> i would say as far as we're concerned, we're similar in the sense that any long-short equity firm is similar.

we're in the same category of funds, but there the similarity ends everything we built and every algorithm we used, we developed in-house we consider it our secret sauce and what makes our strategy special, and bridgewater has their own. that's good for them as well >> now, we reached out to bridgewater to see if they would like to provide comment in response to the interview. they said the court proceedings have been discontinued and the parties have resolved their dispute. this speaks to the larger issues surrounding talent wars in the hedge fund industry, the competitive nature of the hedge fund industry, the fear that former employees will run off and be a big competitor. you know, this is kind of just emblem emblematic of the trend. >> and bridgewater, it's a puzzle wrapped in an enigma. you can go on and on it's funny, because their

internal culture is all about transparen transparency, but from the outside world, you get nothing and know so little they have physical security there that represents a decent percentage of their overall employees. that firm will never stop having sq questions. >> this started out in arbitration, and as you know, when it is an arbitration, it's behind closed doors. reporters don't get any insight into the fact that it's happening at all let alone all the details of it. this did spill out into public court filings so we were able to get a better sense of what bridgewater was alleging they argued to your point about security, they almost counteracted their own security team in saying it was possible to walk away with code that was something the arbiters were quick to point out. and it was clear from some of the court filings that

bridgewater's gregg jensen was one of the people who kind of spurred this claim against these guys in saying that they walked away with trade secrets according to the court filings he did that based on a guess basically he assumed they walked away without really too much in the way of evidence according to those court filings. really interesting stuff here. i think part of it, too, has to do with a warning shot to other employees. you know, if you leave here, if you start your own hedge fund, here's what could happen to you. but certainly a space to watch in hedge fund industries >> yeah. no question. trade secrets, intellectual property maybe implications for the industry that we don't fully understand quite yet, but fascinating, nonetheless when we come back in the next hour, watching tesla and apple, trading on a split adjusted basis. both stocks are higher we'll take a look wathat that

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the pandemic hitting minority owned small businesses particularly hard. 40% may permanently close their doors as owners struggle to secure the financing they need a americaer black owned back, we

highest balance, the pandemic has created so many disparities with the black community and small businesses since you are truly speaking with business owners every day can you give us a sense of what they're saying and some of the struggles with the pan determine take is creating such hardship for them to stay afloat right now? >> yes, good morning and first of all, thank you for having me on it is really heartbreaking as you lead with the exact on can communities of color and african-american and latino lead businesses you mentioned 40% of african-american led businesses are chuter due to the pandemic we have a similar statistic with business that's will not reopen as a result of this pandemic the stories are heartbreaking.

they are individuals who are lacking the resources they need to really bridge their businesses lacking the access and the liquidity. >> it is certainly and important feature here why as that access to capital been so difficult to come by the ppe loans were designed to bridge the cap here. there have been studies by the fed showing that the black communities did not have the same access to communities what can be done in washington to really help this situation? >> that is absolutely true in fact you mentioned the survey we have also seen surveys where 95% of the african-american home businesses, they were unable to access the ppe program i will contract that with our experience at city first bantk f

dc we were a participant, and 40% of the capital that we were able to provide was directed specifically and provided to businesses and nonprofits lead and owned by people of color and african-americans. >> brian, at the same time there has been big players, i'm thinking of costco on friday that joined an effort that netflix seeded building an investment fund to fuel black led financial institutions in community efforts, are those, the side of those, being felt. it s it a sign that a commitment from larger companies has better sticking power >> i would like to applaud those efforts and we hope that there

will be more coming forward. the size of the gap, communities of color, african-american communities, it is substantial and systemic and historic. it requires very intentioned discipline efforts to and sustainable efforts to attain those gaps we believe our move is also another one with two institutions that have long standing histories long standing basis in the communities of los angeles and washington dc of delivering within these gaps. these are great communities of great need and quite frankly it really takes that intentionality and that being of the community and being sustained in the community to close these gaps to your question. brian, in the intro we

mentioned your bank and the city first bank a bicostal bank there >> yes, it is two institution wgs long standing histories in the community of closing this gab. and we believe together these institutions can do so even more strongly providing more capital in the collective, two really key segments high cost urban areas, washington dc, secondly the topic that we have been talking about, small business, really supportive lastly, in third, also supporting a non-profit that is

also working to shore up these very important communities of high potential >> it is a interesting and important time to be doing a merger and extending your reach. we appreciate you coming on to share those details with us. thank you. >> my pleasure >> leslie, thanks. good monday morning, everybody it is late 8:00 a.m. at tesla, 11:00 a.m. on wall street, and "squawk alley" is live ♪ ♪ ♪